their organization. Of the board directors surveyed who had ousted their
CEOs, 31 percent said they did so because the CEOs had failed to sell the
need for change initiatives and did a
poor job of motivating employees and
managers in the new direction.

“Driving change can require up to
two-thirds of a leader’s time and requires a number of new skills,” says
Mark Spears, KPMG’s Global Head of
People and Change. “Whilst we believe
that these are eminently teachable, the
reality is that leadership development
programs typically don’t cover them.”

TRANSFORMING CHANGE MANAGEMENT
Change management, as it is known
today, is in the midst of a transformation that may well lead to its extinction.

As companies develop a capability forchange that becomes part of their or-ganizational DNA, the time, resources,and resistance typically associated withchange management will give wayto a business model of agility wherechange is the norm. The driving forc-es behind this transformation are dataanalytics, design thinking, and digitaltechnology. Together, these three de-velopments are impacting every phaseof the change lifecycle, leading togreater, more immediate benefits.

“The ROI [return on investment] ofchange management is tied to be-ing able to drive faster realizationof business value with less risk andbetter outcomes,” says Yves VanDume, Deloitte’s Global Leader forChange Management Consulting.“We’re now able to show with dataand analytics how if certain thingsdon’t get done, the client won’t real-ize or capture the value of the busi-ness case or synergy targets.”Design thinking is ideally suited tohelping organizations understand theroot causes of resistance and create col-laborative environments for problemsolving. Digital technology is acceler-ating the diffusion and adoption of newtools throughout the organization whilealso providing a platform for personal-ized change communications. How-ever, it is the use of intelligent changedata before, during, and after an imple-mentation that is having the greatestimpact on change management.“People analytics and data-driveninsights are driving a kind of organi-zational fitness for change,” notes BobGruman, Global Leader for PwC’sChange Management capability. “It’snow possible to detect patterns in howchange unfolds, such as understand-ing how stakeholders shift throughoutthe change journey. Being able to an-ticipate and make decisions based ondata puts leaders in a stronger, moredefensible position to handle unex-pected change when it comes along.”These three forces are combiningto raise the maturity level of organiza-tions’ change capabilities, a first stepon the road to organizational agility.

CHANGE MANAGEMENT CONSULTING MARKETPLACE

Provider Profile: The change management consulting landscape is populated by a mix of providers that
may differ in orientation, but share a commitment to
change management as an enabler of strategy execution through people and culture. Key differentiators
include maturity, size, and scope of services; regional,
functional and industry specialty; and technical depth
in specific aspects of change management (e.g., employee engagement). Against this backdrop, the following emerging trends point to new directions in the
delivery of change management consulting.

■ Consulting providers building internal ecosystems.

This trend is most evident in strategy & operations con-sulting firms and management & financial consultingfirms, where acquisition strategies have targeted capa-bilities in leadership development and organizationalculture consulting, design thinking, data analytics, anddigital innovations in communications, social network-ing, and collaboration platforms. The internal ecosys-tem provides differentiation for traditional changemanagement consultants through new approaches thatfacilitate co-creation and enable precision throughoutall phases of the change process.

■ Organizations building internal change capabilities.
A general acknowledgement that change management
is a required business competency is fueling corporate
development of an internal change function. “A lot of
organizations have built up their own change management capabilities, which frees us up to provide more
strategic services and insights,” notes PwC’s Bob Gruman. “We can bring a fresh perspective, be it from an
agile or cultural standpoint, to help them think differently about their change strategies and to see how they
might want to take on more risk as they step up their
game in their own market.”

■ Value-based pricing arrangements increasing. These
internal functions represent a new breed of demanding
buyers, singularly focused on realizing economic value
from change efforts. The practice of value-based pricing
is not uncommon in change management consulting, and
many providers have developed success metrics based on
decades of experience to assess an organization’s readiness for value-based pricing and negotiate terms.